According to Cointelegraph: In a major development, Tether, a prominent stablecoin issuer, has updated its terms of service (ToS) for customers in Singapore, effectively barring particular customer groups from redeeming Tether (USDT) tokens. The information first came to light via Julian Hosp, co-founder and CEO of Decentralized Finance (DeFi) protocol Cake DeFi, through an email exchange received from Tether.
Tether's email elucidated that Cake DeFi is controlled by another corporation based in Singapore, and in accordance with the modified ToS, these customer categories will not be allowed to redeem USDT. However, there still seems to be doubts about whether Cake DeFi can exchange USDT into U.S. dollars owing to its Singaporean base. Notably, the phrase "controlled by another entity" has sparked confusion among many crypto-enthusiasts. The new ToS effectively bans corporates, directors, and shareholders in Singapore, who are influenced by outside entities, from being Tether customers.
The changes in Tether's ToS arrive amidst an immense cryptocurrency money-laundering scandal in Singapore where confiscated assets have escalated to over $2 billion. There is speculation that these changes might be specific to Cake DeFi, indicating a possibly heightened due diligence or partnership issues between the two companies.
